CHINA. Offshore duty free sales on Hainan island rocketed by +218.2% to CNY10.85 billion (US$1.6 billion) for the period 1 July to 19 October, according to official figures supplied to The Moodie Davitt Report by the Hainan Provincial Bureau of International Economic Development (Hainan IEDB).
The significance of the period quoted is that Hainan’s enhanced offshore duty free shopping policy was introduced on 1 July.
Key changes to the offshore duty free shopping policy included:
- The annual offshore shopping quota was increased from RMB30,000 (US$4,215) to RMB100,000 (US$14,050).
- The number of categories was increased from 38 to 45, including spirits & wine
- The number of cosmetics skus able to be purchased was raised to 30 from the previous 12
- The limit of RMB8,000 (US$1,129) for a single purchase was removed
Haikou Customs data shows that some 1.44 million customers bought 11.6 million duty free products during the period, increases of +58.5% and +142% year-on-year, respectively.
Citing the provincial bureau of statistics, Chinese state-controlled media China.Org.Cn reported that total retail sales of consumer goods in Hainan have achieved year-on-year growth for five consecutive months since May, driven by strong growth in the offshore duty free sector.
